Wednesday September 23, 9:01 am Eastern Time
Company Press Release
Netbet Inc. Acquires Land Based Casino In Costa Rica
LAS VEGAS--(BUSINESS WIRE)--Sept. 23, 1998--Netbet Inc. (OTC/BB:NBET) (the ''Company'') Wednesday announced that it has signed an agreement to acquire Kutumari S.A., (''KU''), a privately owned Costa Rica corporation. KU will be operated as a wholly owned subsidiary of Netbet.
KU's primary asset is its lease and rights to operate the casino at the Jaco Fiesta Hotel located in Jaco Beach, Costa Rica. Jaco Beach is a world renowned surfing resort located on the Pacific Ocean in Costa Rica. It is the nearest beach to San Jose, the Capitol of and largest city in Costa Rica.
The Jaco Fiesta Hotel opened in 1990 and is the closest ocean front hotel to the San Jose International Airport as well as the largest operating hotel in Jaco Beach. Jaco Beach has nearly 2,000 hotel rooms in 58 different hotels. Expansion of hotel facilities is underway at Jaco Beach with the Marriot Los Suenos Resort and Golf Club scheduled to add 220 additional rooms and a championship 18 hole golf course and major international marina in 1999.
Terms of the KU casino lease call for the expansion and upgrading of the existing Fiesta Hotel Casino to offer all legal table games as approved by the Government of Costa Rica. Opening of the expanded modernized casino is currently scheduled within 60 days. Preliminary projections by KU indicate a net revenue in excess of $2,000,000 for the first full operating year of the casino. Financing for expansion and upgrading is estimated to cost one million U.S. dollars and is to be arranged by the company's investment bankers Lloyd Wade Securities (''LWS''). LWS is a member of the National Association of Securities Dealers and has headquarters in Dallas, with approximately 10 regional offices and 175 brokers.
The agreement between the company and the current shareholders of KU provides for reimbursement by the company of certain costs incurred by KU in connection with the Jaco Fiesta Casino as well as 300,000 common restricted shares of Netbet and warrants to purchase an additional 500,000 restricted shares.
The company, whose share price is quoted on the Electronic Bulletin Board under the symbol NBET, also announced that it is preparing the filings necessary to become a fully reporting company (''12G'') pursuant to the Securities and Exchange Commission regulations. Following approval of the ''12G'' status, the company will continue with its plan to become a Nasdaq listed company.
James Brewer, chief operating officer of Netbet Inc. stated ''Acquisition by Netbet of the land-based Jaco Beach Casino is consistent with the company's previously announced objectives of broadening and diversifying the company's market base in gaming activities. We believe the acquisition of the Jaco Fiesta Casino complements our company's current market base of developing and licensing Internet technology, and should contribute significantly to the company's future net revenues. The company also considers that its plan to become a fully reporting company and apply for listing on Nasdaq will further enhance its expansion and diversification plans by providing a broader trading base for the company's stockholders.''
Netbet Inc. currently has an exclusive agreement with Casinos of the South Pacific (''COSP'') whereby Netbet Inc. receives 80% of the net revenues from the COSP offshore Internet casino located in the Cook Islands (www.cosp.com) in exchange for Netbet Inc. providing technology, marketing, and financial consulting and assistance to COSP. The COSP site is one of the world's first operational (''play for money'') Internet gaming sites and provides a wide variety of casino games and Asian sports betting in those jurisdictions where it is not unlawful to do so.
For additional information contact James Brewer at 949/474-2191.
Netbet is an OTC BB quoted company. Some statements in this press release are forward looking and are subject to certain risks and uncertainties. These risks and uncertainties include but are not limited to economic conditions, changes in laws or regulations, demand for products and services of the company and the effects of competition. These risks and uncertainties could significantly affect anticipated results in the future and actual results may differ materially from any forward looking statements.
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Contact:
Netbet Inc.
James Brewer, 949/474-2191
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